DoD's $27.7M Verizon contract for Wired Telecommunications Carriers awarded via full and open competition
Contract Overview
Contract Amount: $27,668,033 ($27.7M)
Contractor: Verizon Business Network Services LLC
Awarding Agency: Department of Defense
Start Date: 2009-11-10
End Date: 2022-11-19
Contract Duration: 4,757 days
Daily Burn Rate: $5.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: VZBZ000149EBM
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $27.7 million to VERIZON BUSINESS NETWORK SERVICES LLC for work described as: VZBZ000149EBM Key points: 1. Contract awarded to Verizon Business Network Services LLC for $27.7M. 2. Service category is Wired Telecommunications Carriers (NAICS 517110). 3. Awarded under full and open competition. 4. Contract duration is 4757 days, spanning from 2009 to 2022. 5. This is a delivery order under a larger contract.
Value Assessment
Rating: fair
The total award amount is $27.7M. Without specific per-unit data or comparison to similar contracts for wired telecommunications services, it's difficult to definitively assess value. The long duration suggests potential for price changes over time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market prices.
Taxpayer Impact: Awarded via full and open competition, this contract likely secured competitive pricing, maximizing taxpayer value for the telecommunications services provided.
Public Impact
Ensures critical wired telecommunications infrastructure for the Department of Defense. Supports national security operations through reliable network services. Long-term contract provides stability for service delivery. Potential for outdated technology given the 2009-2022 timeframe.
Waste & Efficiency Indicators
Waste Risk Score: 58 / 10
Warning Flags
- Long contract duration (over 12 years) may lead to outdated technology or pricing.
- Lack of specific performance metrics makes value assessment challenging.
- Delivery order structure can obscure total spending visibility.
Positive Signals
- Awarded through full and open competition, indicating competitive pricing.
- Supports a critical government agency (DoD).
- Long-term award provides service continuity.
Sector Analysis
The Wired Telecommunications Carriers sector involves companies providing telecommunications services via wired infrastructure. Spending in this sector can vary significantly based on agency needs, technological advancements, and contract structures. DoD spending on such services is typically substantial due to national security requirements.
Small Business Impact
The data indicates this contract was awarded to Verizon Business Network Services LLC and does not specify any small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors or if opportunities were missed.
Oversight & Accountability
The contract was awarded as a delivery order, suggesting it falls under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would involve monitoring the performance and pricing of this specific order within the framework of the parent contract.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Long contract duration potentially leading to outdated technology.
- Lack of detailed performance metrics for value assessment.
- Potential for price increases over the contract's extended term.
- Delivery order structure may obscure total contract value and scope.
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $27.7 million to VERIZON BUSINESS NETWORK SERVICES LLC. VZBZ000149EBM
Who is the contractor on this award?
The obligated recipient is VERIZON BUSINESS NETWORK SERVICES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $27.7 million.
What is the period of performance?
Start: 2009-11-10. End: 2022-11-19.
What was the specific scope of services provided under this delivery order, and how did it align with the needs of the Defense Information Systems Agency?
The data identifies the NAICS code as 517110 (Wired Telecommunications Carriers), indicating services related to the operation and maintenance of telecommunications networks using wired infrastructure. The specific scope would detail the types of circuits, bandwidth, and support provided to DISA, crucial for their mission-critical communications.
Given the contract's start in 2009 and end in 2022, what technological advancements occurred in wired telecommunications during this period, and how might they have impacted the value or necessity of
The period 2009-2022 saw significant advancements in fiber optics, increased bandwidth capabilities, and the evolution of network management technologies. If the contract primarily covered older technologies, the government might have been overpaying for services that could be obtained more efficiently or with higher performance through newer solutions.
How does the $27.7M total award compare to benchmarks for similar wired telecommunications services procured by other federal agencies or large organizations during the contract's lifespan?
Benchmarking this contract's value requires comparing its per-unit costs (e.g., cost per Mbps, cost per circuit mile) against similar services procured by other entities. Without this granular data, assessing if $27.7M was a competitive price is challenging. The long duration further complicates direct comparisons due to market fluctuations.
Industry Classification
NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Verizon Communications Inc
Address: 22001 LOUDOUN COUNTY PKWY, ASHBURN, VA, 20147
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $27,668,033
Exercised Options: $27,668,033
Current Obligation: $27,668,033
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC101909D2000
IDV Type: IDC
Timeline
Start Date: 2009-11-10
Current End Date: 2022-11-19
Potential End Date: 2022-11-19 00:00:00
Last Modified: 2023-02-28
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